Saxo Bank, a renowned European online broker, recently announced significant changes to its global operations.
Since July 1, 2024, Saxo Bank has ceased onboarding new clients in several countries, including Cyprus, as part of a strategic shift.
This article explores the implications of this decision for current and potential clients in Cyprus and provides alternative investment platforms for those affected.
Is Saxo Bank available in Cyprus?
No, since July 1, 2024, Saxo Bank stopped accepting Cypriot clients.
You can check Saxo’s full list of accepted and restricted countries here.
If you try to open a Saxo Bank account from Cyprus, you won’t be able to find “Cyprus” in the country selector:
Impact on current clients
Existing clients in Cyprus will not face immediate offboarding. However, Saxo Bank planned to offboard all clients from Cyprus by the end of the year 2024. Clients will be notified directly by Saxo Bank about the offboarding process and timelines.
Alternatives for Cypriot investors
For affected investors, there are several reputable alternatives to consider:
- Interactive Brokers: Best alternative platform overall. IBKR is Saxo’s equivalent. It also offers a wide range of financial products, and low commissions.
- eToro: Best alternative for low commission stock investing and social trading
- XTB: Best broker for forex and commission-free ETFs
- Plus500: Best for beginners and CFDs
- Trading 212: Best broker for beginners and auto-invest
Why is Saxo Bank leaving Cyprus?
Saxo Bank’s decision to withdraw from Cyprus is influenced by several key factors:
- Regulatory compliance: The bank aims to better align with regulatory requirements. Different countries have varied and complex regulatory environments, and maintaining compliance in numerous jurisdictions can be challenging and resource-intensive.
- Operational efficiency: By reducing its presence in multiple countries, Saxo Bank can streamline its operations. This focus allows the bank to concentrate resources and efforts on markets that align more closely with its strategic goals and operational capabilities.
- Risk management: Exiting certain markets helps Saxo Bank manage and mitigate risks more effectively. This includes financial, legal, and operational risks that may arise from operating in regions with volatile economic conditions or unstable regulatory frameworks.
- Resource optimization: By concentrating on fewer markets, Saxo Bank can optimize the use of its resources, ensuring that it provides exceptional services and innovative solutions in its core markets.
- Strategic focus: This decision is part of Saxo Bank’s broader strategy to enhance its service quality and innovation in markets that offer more significant business potential and stability.
Conclusion
Saxo Bank’s strategic exit from the Cypriot market is a significant shift that will impact many clients.
By understanding the reasons behind this decision and exploring alternative investment platforms, affected investors can navigate this transition smoothly and continue to meet their investment goals.
